Giving up on your college dreams can be one of the hardest things to do; you tend to do all within your reach including acquiring a student loan. Out of desperation many students jump at any student loan offers that come their way without properly evaluating them.
Student loans serve as helping hands to students who do not have enough savings for college. Recent research shows that Americans owe over $1.4 trillion in student loan debt. This is a clear pointer that things don’t always go the way many students planned. Before diving at any student loan offer, it is expedient you consult with a student loan expert before taking up any loan.
Here are five things to be considered before getting a student loan.
Have I gotten the necessary information?
I think this should be the first thing to be considered in your quest of taking out a student loan. Getting vital details about the loan package is crucial before sealing anything. This is not just some joke you dabble into with half-baked information or without the guidance of a student loan consultant.
Know that taking up a loan; a student loan at that isn’t placing you at the best angle. So it will be wise for you to consult with a student loan expert to clarify you on some terms. Also know the available repayment options, interest rates, grace period and the amortization term.
Will I be able to afford the payment?
According to Forbes, the average student in the Class of 2016 has $37,172 in student loan debt. It is obvious that most students that take up student loans end up becoming lifetime debtors.
Remember you don’t only payback the loan but also with interests. Weigh your possibilities of getting the kind of job that will totally erase your name from the debtors list after graduating from college.
Research has shown that an average bachelor degree holder takes about 21 years to repay student loans. This stat alone is enough to make you think twice before getting a student loan.
Is the risk worth taking?
Let’s face the truth. Nobody loves being a debtor and for some people before they’ll allow that description it really has to be worth it. Ask yourself if being indebted to get a college degree will be worth it?
You will need not just any job but a well-paying job to justify your student loan was worth the risk. A lot of students are often blinded by the present that they don’t consider the effect of present decisions in future.
If you’ve weighed your options and found out that the risk of taking a student loan is way higher than the financial benefits you’d get after graduation, don’t think of going ahead with the loan. You can seek other ways of seeing yourself through school.
Must I get a loan?
I think this question supersedes every other question. The answer to this question will really determine if you need to take up a student loan or not. If you can afford to pay for tuition, accommodation and other essentials, then you certainly don’t need a student loan to survive in college.
College isn’t a place for luxury, it’s that stage in life where you not only get enlightened academically but also become the best money manager. You know what you have and what you can make out of it, so make the best decision.
How well will I spend this money?
When you have finally concluded that student loans are the best options you have in achieving your dream of getting a college degree, the wisest thing you can do with the money is to use it for what it’s meant for.
Don’t do anything non-academic related with that money, because any wrong move can put you in a dilemma.
Finally, don’t rush in taking out student loans. Take your time to evaluate and scrutinize the various options available. Consult with an expert if the need be to avoid adding to the statistics of graduates regretting their hasty decisions on student loan debts.